News

Australia's Dairy Supply Chain Under Scrutiny

05 September 2016

AUSTRALIA - Following questions about the functioning of Australia’s dairy supply chain, the Australian Competition and Consumer Commission (ACCC) will launch an investigation into the dairy industry, UK levy board AHDB Dairy has reported.

According to Minister for Agriculture Barnaby Joyce, this investigation will be “forensic” and much broader than a market study.

The ACCC would have the power to compel companies to produce information and to prosecute where required. The investigation is expected to commence in November and report back to the government in the second half of 2017.

This latest investigation comes at a time when the commission is also investigating whether or not dairy processor Murray Goulburn acted unfairly by slashing milk prices and seeking to claw back the difference.

In addition, the ACCC is expected to scrutinise farmer concerns that they (the farmers), and not the processors carry all of the risk in the dairy supply chain. While, issues around competition, bargaining and the impact of local and international prices on the profitability of Australian farmers are also up for investigation.